Are you ready to invest in the electric car revolution? How about the advanced battery revolution? How about the government? If you said yes to all three, then today is your lucky day.
A123, the Massachusetts based battery company has its IPO today. It priced its shares at $13.50, and will trade under the ticker AONE on the NASDAQ. The company hopes to raise $380 million.
In a week filled with IPOs, this is the only one by a company that hasn’t turned a profit yet, writes Earth2Tech’s Katie Fehrenbacher. A123 had a $41.2 million loss for the first half of the year. That’s following a $39 million loss from the same period a year ago, and increasing annual losses over the last three years.
The company is reliant on the government. It has raised $300 million from private investors and received $249 million from the government. It’s looking for hundreds of millions more.
Its three biggest customers provide 75% of its revenues–$68 million in total last year. If it loses the business of BAE systems it could have a material adverse impact.
While the company is seem as emblematic of the coming wave of electric cars, it is not a major supplier of batteries to any car company. CNNMoney says it has relationships with Chrysler, Daimler and General Motors, but it’s not providing batteries to those companies. Chrysler might eventually, but it’s still figuring out its business. GM is working with LG, and Daimler is working with Tesla, as well as developing its own technology.
Business Insider Emails & Alerts
Site highlights each day to your inbox.